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The new version of Need for Speed Hot Pursuit uses the Kinect mounted on your car's dashboard. The chase scenes are way more exciting, and the cops use real bullets! Replayability, however, suffers greatly.

YouTube isn't going to switch. They'll re-encode every video and serve up H.264 for the clients who support that, and WebM for the rest. And Flash versions for the ones that don't support the video tag.
We have some videos on our site, and we encoded them only in H.264 because the iPad/iPhone support was our main concern. We use a Flash-based viewer for Firefox and other browsers that don't support H.264. Why? We're not going to encode and store different versions of our content. It's a PITA, and with our current solution we support 99% of the users.

You're right, this isn't a Wiimote killer. The Sony Move is an attempt at a Wiimote killer. This is more like the Wiimote + Balance Board (which I own).

Having used the Balance Board, it's got major limitations. There are games which want to you "jump" on the Wii (Snowboarding), but if you actually jump, the game freezes and displays a warning: Do not jump on the balance board. Major gameplay killer.

Kinect sees your entire body and can handle jumping, moving, and more, without a controller. Start a game by moving your hand over the on-screen button. This will be awesome for casual and party gaming, since nobody's controller will be out of batteries.

This isn't a Wiimote killer, it's a game-changer. Microsoft has a hit with this one. Until Sony's mind-reading controller comes out, that is...

Yes. A friend (who works at MS) has a demo unit.
This blows away the Nintendo Balance Board, because you can actually JUMP!
It's better than the Sony Move, because you don't need a stupid looking controller to play it.
It's very accurate at reading your motions in a 3d space. Microsoft has a winner on their hands with the hardware. If they can get some good titles behind this, it's going to be awesome.